Title
Resolution to Approve Amendment No. 2 to the Professional Services Agreement with Stantec Consulting Michigan, Inc. for Construction Inspection Services ($1,000,000.00)
Memorandum
Attached for your review and approval is a resolution to authorize Amendment No. 2 to the Professional Services Agreement with Stantec Consulting Michigan, Inc. (Stantec) for construction inspection services.
The Engineering Unit provides inspection for the construction of capital projects and private development projects within the City. Inspectors’ tasks include oversight of contractor activities, enforcement of construction standards, and measurement of pay-item quantities. These tasks are critical to the success of any construction project.
Due to fluctuation of construction activity throughout the year (lighter in the winter and heavier in the summer), the level of staffing in the Engineering Unit must often be supplemented to provide required inspections.
The original agreement (approved by City Council on January 16, 2018) provided for two one-year extensions to be approved administratively, however failed to allow for a corresponding increase in the contract amount. This amendment, along with Amendment No. 1 (approved by City Council on October 1, 2018), will extend this contract through the 2020 construction season, at which time a new Request For Proposals will be issued by staff to solicit new proposals for inspection services work starting in 2021.
Due to the amount of work performed on private development projects in the 2018 and 2019 construction seasons, the need for consulting inspection services has been significantly higher than anticipated. This volume of work led to the increase of $450,000.00 via Amendment No. 1. It is anticipated that Amendment No. 2 will be sufficient to sustain these services through the 2020 construction season to adequately provide construction inspection for all projects. This amendment will bring the total contract amount with Stantec for this three-year period to $1,950,000.00.
Stantec is in compliance with the requirements of the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: The services provided by these consultants will be paid for within approved project budgets and annual operating budgets as appropriate. Costs for inspection on private development projects are recouped through fees charged to developers.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City of Ann Arbor Engineering Unit provides inspection for the construction of capital projects and private development projects within the City;
Whereas, The demand for these inspection services fluctuates seasonally and often creates demands beyond what in-house resources can meet;
Whereas, The amount of inspection work performed on private development projects has been higher than anticipated, and is predicted to be at similar levels in 2020;
Whereas, Stantec Consulting Michigan, Inc. is in compliance with the requirements of the City’s Non-Discrimination and Living Wage ordinances; and
Whereas, The required funds for the construction inspection services are available in the Engineering Unit's annual operating budget and approved capital budgets, as appropriate;
Whereas, The services provided by these consultants will be paid for within approved project budgets and annual operating budgets as appropriate. Costs for inspection on private development projects are recouped through fees charged to developers;
RESOLVED, That Amendment No. 2 to the Professional Services Agreement with Stantec Consulting Michigan, Inc. in the amount of $1,000,000.00 be approved for Construction Inspection Services, which Amendment will increase the total possible contract amount to $1,950,000.00;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement after approval as to form by the City Attorney and approval as to substance by the City Administrator; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.